Aerospace and defense company,
Lockheed Martin Corporation
(
LMT
) has won a contract from the U.S. Navy for the systems
integration of nine MH-60R SEAHAWK helicopters. This $686 million
contract is part of the U.S. government's foreign military sales
(FMS) program whereby it will deliver nine MH-60R SEAHAWK
helicopters to the Danish government.
The project is executed by a consortium of leading defense
companies in the U.S. including Lockheed. The company will act as
the mission's system integration operator. Others include
Sikorsky Aircraft, a business arm of
United Technologies Corporation
(
UTX
),
General Electric Company
(
GE
),
Raytheon Company
(
RTN
) and Canada's
CAE Inc.
(
CAE
). These companies will perform as MH-60R airframe manufacturer,
engine manufacturer, sensor supplier and training supplier,
respectively.
Denmark is the second foreign country to opt for the highly
proven MH-60R SEAHAWK helicopters. Earlier Australia bought 24 of
these aircraft. The current order is slated to be delivered by
2018.
The highly advanced aircraft is designed for the purpose of
anti-surface warfare operations. These aircraft will defend
Danish interests in the North Atlantic besides conducting other
missions during international deployments and executing
anti-piracy tasks.
With the imminent threat of U.S. defense budget cuts, we
believe such international orders will provide a respite to
Lockheed Martin. Recently, Lockheed acquired Chandler/May Inc.,
an unmanned aerial systems manufacturer. The company focuses on
the design, development, integration, manufacturing, and support
of fully integrated mission critical systems. This acquisition
will complement Lockheed's role as a system integrator in the
aircraft project as well as in other future collaborative
projects. The company retains a short-term Zacks #3 Rank (Hold
rating).
Another Zacks #3 Rank defense player,
Northrop Grumman Corporation
(
NOC
) received a contract from Indian reseller Marine Electricals Ltd
to supply advanced shipboard navigation systems for 20 fast
patrol vessels. The systems will be supplied to the Indian Coast
Guard.
Lockheed Martin has been a consistent performer posting
earnings surprises in the last eight quarters. The Zacks
Consensus Estimate for the fourth quarter and full year 2012
presently stand at $1.79 per share and $8.40 per share,
respectively.
Based in Bethesda, Maryland, Lockheed Martin is a global
security and aerospace company that employs about 123,000 people
worldwide with market capitalization of $29.40 billion
CAE INC (CAE): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis
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LOCKHEED MARTIN (LMT): Free Stock Analysis
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NORTHROP GRUMMN (NOC): Free Stock Analysis
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RAYTHEON CO (RTN): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis
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